Is a Bombs Away franchisee required to conduct on-premises supervision of their business?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.
The Principal Executive must have at least 10% ownership interest in Franchisee.
The Principal Executive must participate in the direct operation of the Business and must devote substantial time and attention to the Business.
If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Bombs Away Franchising's reasonable approval.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchisee's Principal Executive is required to participate in the direct operation of the business and devote substantial time and attention to it. The Principal Executive is the person designated on the Summary Page as primarily responsible for the business and has decision-making authority on behalf of the franchisee. This individual must also have at least a 10% ownership interest in the Bombs Away franchise.
If the Principal Executive dies, becomes incapacitated, transfers their interest, or otherwise ceases to be the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Bombs Away's approval. This ensures that there is always a qualified individual overseeing the operations of the franchise.
This requirement ensures that Bombs Away franchisees are actively involved in managing their business, which can help maintain quality control and adherence to brand standards. It also means that franchisees cannot be entirely passive investors; they must dedicate significant time and effort to the day-to-day operations of their Bombs Away business.